Tarek Kabil, Industry Minister of Egypt, has announced to set up a textile city in Sadat City. The project will be implemented in five phases by the Chinese firm Man Kay, which owns 25 affiliated companies, according to Egypt’s media reports.
The proposed project in the city will be spread over an area of 3.1 million sq. mt. and house 568 factories, offer employment to more than 160,000 workers and technicians with a total annual production value of US $ 9 billion, as reported.
At least 87 per cent investment of the total paid-up capital of US $ 2 billion will be shared by foreign investors while 13 per cent will come from the local investors.
The Government of Egypt has planned to commence work on this project by March this year and is expected to be completed by 2020. At least 57 factories with a total investment of around US $ 230 million will be set up in the first phase. The fifth and final phase of the project will be completed by 2024.
The project negotiations had begun in May last year and reached an agreement in November to establish a city for the textile and garment industry in Sadat City. This project comes in the framework of strategic cooperation between two nations, Kabil said.
Over the past two years, Sadat City witnessed the opening of 79 new factories in the chemical, food, engineering and electronic and construction materials industries that represents 13 per cent of the total factories opened till date. The textile and apparel industry will now be tapped to generate more revenues from the region.
Source: https://apparelresources.com/business-news/manufacturing/egypt-establish-largest-textile-city-sadat/